ECONOMICS

Detailed explanation-1: -The long run is a period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all costs, whereas in the short run firms are only able to influence prices through adjustments made to production levels.

Detailed explanation-2: -In the long run, firms can choose their production technology, so all costs become variable costs. Economies of scale refers to a situation where the average cost decreases as the level of output increases.

Detailed explanation-3: -Long-run refers to the time frame during which the production factors are variable or changeable. There is enough time for adjustment, correction, or adaptation leading to the modification of production level, and as a result, there are no fixed production factors.

Detailed explanation-4: -In micro, studies range from a 3-year long run to a 350-year long run. In macro, studies range from 9 years to 10, 000 years.

Detailed explanation-5: -Long run: In the long run, the factors associated with production, and also the associated costs, are variable. In this period, a firm achieves flexibility in making decisions.